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Average Closings Increase to 50 Days Post TRID

As expected, TRID has caused the average time for a real estate transaction to close to increase to 50 days. No surprise here, but maybe if we make enough noise someone, somewhere with somehow be able to do something about it.

Living in a beach town- we often use an aerial shot to show how close the ocean is. Also- we have rivers, the intra-coastal and canals… aerials are great for waterfront properties. Ironically, aerials of beach front properties aren't as common… Love your show!

We use aerial photos on almost every photo shoot of a home plus wait for it wait for it we use floor plans on every home and one better wait for it wait for it we use HDR photos 20+ some time even 50 photos for a home and guess what. Our photo company only charges us wait wait 130.00 bucks for photos aerial and floor plans why so cheap you ask. We negotiated my god negotiate yes they do every property and you know what ms even better they sell faster and at higher prices

True Story: I lost an LO a few weeks back because of this: The LO says our times are too long and the LO can’t deal with those times. This particular LO was making 250bps(at same rates she was making 130bps at the previous employer), which is well above the industry average. LO had come from a place, prior to my Branch, and was making 130bps on a graduated tier scale. The LO doesn’t structure loans, doesn’t input the loan into the LOS, doesn’t price it, doesn’t lock the rate, doesn’t chase down conditions, etc, etc. I would only charge the LO $300 for the use of an LOA to perform some of these duties for him/her and I would do some of the other duties for him/her. So our U/W turn times around the holiday’s stretched to 5 biz days. Of course some LO’s can’t understand this and don’t know how to deal with this. Keep in mind all other turns are remaining at 24 hours and we do same day Fundings. Regardless of 5 biz days in U/W, it is still typical that our files are out of U/W prior to the Appraisal even being back. This LO jumped ship to another Lender who is now paying him/her around that 150bps model once again. Our average closing times from start to finish is 28 days, and this includes Refinances. Yes, this is post-TRID, and yes, I have to run the report every month. The LO told me that it was unacceptable on his/her last deal that we took 38 days, which was a VA Purchase on a new Build Home with a POA thrown into the mix in the 11th hour, and still closed the file on the scheduled COE date. File originated on 12/18, closed on 01/26. Yup, in the middle of two major holidays and MLK day as well. We would have closed approximately 1 week prior if the Builder would have provided the needed VA DOCS and Addendum to the Contract regarding VA Non-Allowables. The LO also lost their mind because it took 48 hours to remedy the POA because there was issue with the POA with addresses on it which meant there had to be changes made to the POA, etc. On the exit interview we provided proof to the LO that their average closing was 28.6 days which included Refi’s and the Branch’s average closing is 27.4 days and my average closing is 26.4 days. We are always moving up our COE’s. Our U/W turns are normally 48-72, which honestly means absolutely nothing because almost every loan we have closes under 30 days. The U/W turn time cold be 7 biz days and I am still going to close my loans in less than 30 days.

The principle of the story is this: a) I’m not sure who in the heck is taking 50 some days to close loans and can still retain LO’s. b) I’m not sure what Realtors they are working with, because the COE time frame on my Contracts coming in are generally 35-38 days, that’s it. c) For the most part we have dealt with the TRID issue and are back on track. Honestly we are now encountering the TRID issue where we are so far ahead of time we can’t send out the CD just yet and we have to wait until the magical date hits (7 days prior to signing date), to send the CD out.

TRID-Tremendously Rediculous Insane Delays, is here to stay. I suggested just a minor tweek to TRID by giving the consumer the ability to waive off the new three day "stare at your CD" delay, and was advised by NAMB that our regulators won't even consider the idea. How is it that a consumer can plod through the entire loan process, provided a new revised disclosure every step of the way, and then, at risk of their rate lock expiring, or travel plans, are then required to stare at their CD for a full three days? We are "protecting" the consumer into delay oblivion… What next?

I am not having an issue the lenders closing in 35 days or less. I have worked with post TRID 7 closings and not an issue. But I am not dealing with the BIG four, well I did one WF. Escrow opens escrow officer gets the lender their closing costs to the lender the first two days of opening escrow. The slowest is the lender getting the buyer the CD! Hard for the lenders to put that up front for buyer approval. The pre TRID was sign it or cancel the moving truck!

TRID is exactly what you showed. A way to make money and for the government to get their hands in the bank's pockets or the little mortgage company's pockets, or the Real Estate Agent's pockets. Going through the classes I knew…..that this was going to be bad for our industry. It is what it is though and we have to live with it, like it or not.

My feeling is that TRID has made the entire process more confusing for borrowers. When the data on the forms does not add up (FHA up front MI) to the cash they need, when a new LE goes out at every turn, followed by a CD and then finally by a settlement sheet that looks nothing like the original LE…. well, consumers are confused. I waste more of my time constantly having to review the forms and explain what is not right on each one. You know you are working with Washington when someone cannot look simply at a one page GFE and a two page HUD1 and say, "wow that is easy to understand". Instead we have 30 somethings who never have owned a home getting paid huge salaries to implement their new math on the home buying process. I listened to a town hall meeting among presidential condidates and they still are boasting about how the process is making it clearer for consumers. I have yet to have one buyer who wants to wait all the days to close. They would love to get a clear to close today and close tomorrow.

Same here. Consumers are very confused and I am spending a lot of time valuable time explaining these things over and over. It costs the consumers more money in the end and the lenders as well, lock extensions etc………..very frustrating.

I have three active transactions (all with FHA loans) that are all closing in less than 30 days. One is actually closing 6 days eariler than the 32 days I originally scheduled. I was originally based in Walnut Creek, CA (near where the NREP team is based) but since my move to Fort Worth, TX, I've noticed that here, title companies and lenders fight to bring efficiencies in their processes and don't make excuses to delay. Yes, when TRID was coming, everyone was adding 15 to 20 days to closings for FHA and VA loans (respectively) but very quickly have we seen everyone finding ways to speed up other areas of their operations to not only accomodate the extra time mandated by TRID but to shorten the overall time it takes to close a transaction.

When it comes to drones, I can appreciate using them for acreage in a million dollar + listing but otherwise, it makes no sense to view a property from the air when it's in a subdivision of non-distinctive properties. After all, unless a buyer is looking for a property large enough to land their private helicopter, it's unlikely the rest of us ground-based humans will need to locate our next home from the sky.

Brian, I am not going to argue one iota with you about what you have shared. But the fact is on my end, in MY world, TRID has not caused any delays. Our mortgage company is pretty large, and we are still able to close almost any deal within 30 days, even 203K loans. In fact, I was speaking with the regional VP about 2 weeks ago and he told me that when necessary, they ahve had several conventional and FHA loans that they closed in just over 2 weeks. When this first started they asked us to give them 45 days. but they pulled that requirement after a couple of months. Now they are asking for a calm 30 days. but 20-25 will do if we must push it. So I am simply not seeing where the issues are for all these lenders. Just my take.

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Andrew Berman is a wonderful friend of the NREP Daily. His MNN shows are always insightful with great guests. Be sure to tune-in to MNN right her on the National Real Estate Post to see what Andrew has in store for you. Great content for mortgage and real estate pros alike!

Realtor Magazine

Realtor Magazine has interesting content that is useful to both real estate and mortgage professionals. Here you’ll see their most recent video content updated in real time as released by Realtor Magazine.

Mortgage Bankers Association

The MBA always had relevant news and insights that greatly benefit any mortgage or real estate professional. Tune-in here regularly at the National Real Estate Post to see what's going on up on "the hill" so you can make better decisions and have better dialogue with your customers.

The RESource Weekly

Ryan Hills and his team over at the RESource are great friends of ours. Tune-in their latest weekly episode right here on the home page of the National Real Estate Post. Ryan delivers fantastic content beneficial for both mortgage and real estate professionals.

Lab Coat Agents

"Exploring the Science of Real Estate" is the essence of Lab Coat Agents. LCA and NREP Daily have a partnership in place that's focused on bringing mortgage originators and real estate agents together. Displayed above is their most recent content with respect to our new COVID-19 environment and it's updated in real time so check every day for new information.

Bearded Men of Real Estate

Two of our favorite guys over here at the NREP Daily. Ray and Dan are true leaders within the real estate industry and their weekly shows prove it. They bring great content and amazing guests to you in a fun and interactive way. Be sure to visit them by clicking the button below so you get notified when they go "live" on Facebook. Trust us, these guys are great!

Mortgage News Network

Andrew Berman is a wonderful friend of the NREP Daily. His MNN shows are always insightful with great guests. Be sure to tune-in to MNN right her on the National Real Estate Post to see what Andrew has in store for you. Great content for mortgage and real estate pros alike!

Realtor Magazine

Realtor Magazine has interesting content that is useful to both real estate and mortgage professionals. Here you’ll see their most recent video content updated in real time as released by Realtor Magazine.

Mortgage Bankers Association

The MBA always had relevant news and insights that greatly benefit any mortgage or real estate professional. Tune-in here regularly at the National Real Estate Post to see what's going on up on "the hill" so you can make better decisions and have better dialogue with your customers.